tv Real Money With Ali Velshi Al Jazeera October 15, 2014 7:00pm-8:01pm EDT
the parties. i think we got it. thank you. that's all the time for this news hour. i'm tony harris in new york city. real money is coming up on al jazeera america. >> what goes up must come down. as a wild day we see, taking down america's economy. what happens next? i'm ali velshi with "real money." what is causing this madness, the cause of ebola and outright fear that isil could bring its campaign to america. you the consumer drive this committee. when you are afraid it all stops working. i've assembled the smartest minds that we have.
you have questions and we have answers. >> i ended last night's show with an economic forecast of sorts. i called it gently cloud and while i would not be using my umbrella just yet i would consider carrying one with me just in case. well, just in case happened today. the southbound 500 fell as much as 2.9%. the dow lost 460 points. it's biggest single day point drop in three years. the dow swung 600 points in two hours. it finally closed 173 points lower for the day. when you're relieved that the dow is just down 173 points. what was it this point? was the slowing economy? ripe for prophet taking?
the possibility of a recession in europe triggered by the conflict between russia and ukraine. the seemingly endless threat of terrorism or another person infected in the united states with ebola. it could be some, all or none. if you don't know why this is happening you can't protect yourself. over the course of the next hour i will speak with economists and public health experts. and the man who wrote the book army general. today's dips and peaks in trading finished 1.4% for the day. the panic is rushing investors
into bonds. talk about panic, boy, what a difference a month makes. it was only last month septemb september 18th to be exact, right there, when the s&p closed at an all-time high. despite volatility over the summer stock market observers were still talking about america's six-year bull run. but in less than a month's time the index has shaved 7.4% off its market capitalization. this is less than two points shy of the official definition of a correction. as of today the s&p has wiped out most of its gains for the year. that means if your 401k stockholders mimic the stock holders e, there is no doubt that there is a storm brewing in
the stock market. i want to move through the numbers and noise and get down to the protective year that you need. is it this umbrella or something more serious in the storm that we're seeing. i'm joining in studio with steve, chief economist at security usa. standing by in florida, chairman and chief investment adviser of cumberland advisers which manages $2.3 billion. and joining us from los angeles is naomi prince, former bange banker at goldman sack's and author of a book called "all the america's bankers." you've been watching this happen for a month. what were you thinking about, and what have you been doing about it? >> well, you summarized all the reasons together as to why the market is going through a gyration, but if you look at
since july this notion of a zero interest rate worldwide is coming apart we have a dispersion among the central banks. that increased volatility, ali, and it shot up to what is a newer norm, an we're not used to it. we're seeing it unfold from the third of july through today. 200 points swings the dow. get used to them. we'll have more of them. we'll have a shift in volatility. that is what is driving investor fear and the rest of what you described is what they see on your show and elsewhere to explain it. but the volatility increase is the big force. >> and naomi you made this point, it is here to stay. maybe guys like david can handle this because they're professionals, but for those people out there who have 401ks, looking at this market and seeing how connected it is to their economy, you're saying what david is saying get used to the volatility.
>> i agree on the volatility side, besides all the things you mentioned there is the fact that zero interest rates are going away. and the policy and qualitative easing to lift you will and invest in their own stock and so forth, that has been a big driver of the market. with that going away there is no external driver. you have the negative impact and no driver to keep it all up. that's why volatility is staying, that's why i believe it will be a much more negative bias. it is scary if you're an investor. and it is scary as you look at your 401k because you'll see a lower val than you had at the beginning of the year. that's hard to get used to. >> especially after some of the years we've seen. naomi is making an interesting point here. combined with all the money central banks have been putting in the economy were going to help raise things up, and then the economy would take over
itself without all of this stuff. we sort of saw that with the big companies that bought housing stock. they put a floor on it, and now we're hopin hoping that that shifts on to consumers. why are we not seeing this happen? why are we seeing the threat of consumer bankers, consulars are not there to fill in the gap. >> it's the onsituation, the earnings situation, how companies in environment for lack of pricing power is going to get double digit earnings. single digit interest rates means they are going to cut costs. and reduce the amount of compensation and share you give to your employees. keep on the backdrop a couple of things that you mentioned. walmart took healthcare away from its workers. target has done the same thing. how many individuals working for corporate america see that companies are not making a lot of money. they've leveraged up their balance sheet to boost their earnings are going to look at
them and say take away their healthcare. the company and ceo who does that will get applauded by wall street because earnings are going to look great but it will wind up being the worst thing in the world that could happen to the american consumer. uncertainty is what volatility is for your consumer. >> when you're looking at buying stocks and valuations, whether it's going to go up and you can't avoid the kis disconnect about between what steve just mentioned and the consumer who is not feeling financially stronger after five years of this recession. >> no, you can't. we have have had a cash reserve and managed accounts and today when the market was down 400 points i started to do a little buy program in the transport sector. why? everybody knows the airlines are in trouble because of ebola. it is old news.
railroads cannot be replaced. if we get a slowing and price adjustment in the stock market and you're willing to accept that we're not going to have a full-blown recession, just a very slow gradual recovery with low interest rates for a long time, then these entry points take a little courage, but they're available. we had one this morning today in transports, and in my firm we put some money to work in that sector. >> let me see, naomi, do you agree with that, a very slow gradual recovery, would you buy into that? >> i believe it's going to be low interest rates for a long time because the federal reserve has nothing else to do. because it has not worked they're not going to try to raise rates and look at the terror that could come from that. i don't agree that we're in a gradual recovery. if w we were in a gradual
recovery, the cheap money companies are using to buy their own stock, all of that would have cult minute nateed in unlending or restructuring debt for some help to the general population. that didn't happen. being that it didn't happen when it was so readily available, now we have low interest rates, no qualitative easing coming out, i don't see how that's going to magically spur any kind of growth. >> hold your thought, david, i see you shaking your head. david says is a slow recovery, naomi said no recovery, and i think i can split this baby. we have a bifurcated recovery. for some portion of american society this is the best five years the world has ever seen. if you have money and good credit you can get a mortgage for 30 years for 3.75%. that's not going to get that good. >> no, it's not. that's part of the problem.
the additional things to throw on top of this is the retail sales number which shows weak auto sales. we've seen energy prices slide. energy production is a big part of the american economy and the pace of economic growth. what we're concerned about if energy prices slip a little lower that will be a drag on the economy. will we go into a recession? no. >> you could end up cutting down some of this shale oil, which is expensive production in favor of folks who can drill right in the ground and get oil like they can in saudi arabia. >> we're now a major oil producer, so we wind up having that drag consideration in there. what you look at as an economy, it's going to be at best 2%. it's not a recession. it's not real recovery. it's not what we call growth, it's just there. it's not half full.
it's not half empty. it's half. >> i like 2% growth, low inflation, low interest rates. gradual improvement. 225, 250,000 jobs, gradual improvement. that is bullish for investors. it is still suffering in 20 million american households, which are not getting the income increases that we talked about earlier. that will come, that will take a lot of time. the fed could print gazillion dollars. that would not change that. >> naomi, final thought, i think you agree, the fed could print gazillion dollars and that won't change that. >> the reality there is more than 20 million families that don't have enough money. and the companies don't have the incentive to hire to raise or anything particularly if now their stocks are going to come down if they spent all this debt on extra money on buying. that's creating negative environment for the foreseeable
future. >> naomi prince, don't go away. david, excellent to see you. thank you for your advice. and steve, is the chief economist at mihos u.s. thank you. >> this could be the boost that housing market is looking for. plus, not sharing the wealth. companies are buying back their stock and is one reason why they reached highs this year. but our next guest is calling out companies for not spending that money on employees. those stories and more. keep it here.
>> i don't know if you're still watching after all the bad news i've been givenning you, so i'll give you good news. all the pain in the stock market and hand wringing in the economy is turning to one reason to celebrate if you're looking for a mortgage or if you want to refinance the one you have. investors are pouring suspectser buckets of money into bonds. when bond prices rise because
there is more demand for them, interest rates fall. and boy are they falling. 30-year fixed rate mortgages are now at their lowest level in 16 months. assuming that you have good credit and 20% down to put down on a house. >> reporter: despite warnings by numerous economists at the end of the federal reserve bond buying program will band interest rates this week the average rate for 30-year fixed mortgage in the u.s. dipped below 4% and kept falling. it's a good sign for buyers, but also one more symptom of a troubled global economy. >> the reason there is a drop in interest rates is the safety and soundsness of u.s. treasury bonds in an uncertain world. >> investors worried about economic growth forecast that are lowered than expected, expanding ebola outbreak in africa, and in the united states
and europe are dumping stocks and putting trillions of dollars in bond market. and as bonds rise interest rates fall. this week it fell below 2%. that translates into lower mortgage rates. as of october 15th, the average 30-year fixed mortgage rate was 3.86%. for jumbo loans it was even lower, 3.75%. 15-year fixed mortgages are now below 3%. >> where it has dipped down. it is near historic lows. that should bring as many people into the market. >> it's a development the national association of home builders and it's membership are closely monitoring as they decide how many houses to build. lower interest rates could lure more back in the market.
six out of ten mortgage applications were those who were refinancing their loans and looking for hoer payments. >> since june of 2013, one question is why now is the time for people to take action and get a mortgage and refinance or will rates move even lower. that's for the gamblers out there. joining me now from washington to answer that is knee la richardson, nila. people have been asking me this question, and ey i equivocally say lock in. there is a chance you'll never see these mortgage prices. but what will happen is rates will drop. >> i don't think you're wrong from what we know today. rates are very low. they're triggered as your report said by a flight to quality from
abroad. this is a good time if you haven't already, that's key, to think about refinancing. you may not see this rate again but with global markets they are, never say never. >> but i guess my argument is that when you're hold enough to remember the history of mortgages, if you can get a mortgage at 4%, don't go crazy if someone got one for 3.65% six weeks later. this is a historically low level. mortgages, a 30-year fixed mortgage for someone with good credit is not usually in the 4% range or 5% range. it's normally 6%. >> reporter: in the 1980's they were in the 8%. if you have one of the small group of people who have not yet taken advantage of this rock-bottom rate this is your moment, but most people have, and so it's unlike that a dip in rates will lead to a big refi
boom. >> because last may we had 3.25, and 3.5% rates, and people hoped they would come back but locking in at flightily higher rates. probably everyone who is going to do had a done it. but are people doing what they used to do? are they taking money out of their homes that might have appreciated in value or is they pay off the old loan and take on a new loan. >> back at freddie mac people would refinance and take out money from that equity, but now people are making different choice. instead of taking that money out they're refinancing into a shorter-term mortgage. they're refinancing instead of a 30 years into 15-year paying off that principle and building up quicket. we're seeing more cautious home buyer this time around. >> that will mean a bigger monthly payment but often
slightly lower mortgage rate. this sort of speaks to the what we've been talking about all this show. people are not trusting the bigger economy. they're not trusting that they're safe so they're doing something that is more cautious and conservative. >> it's not a bad thing. the time of throwing caution to the wind when it comes to real estate is over, i think. and right now people are conservative. they do care about having strong equity, and we know that we've seen that price appreciation has slowed down considerably this last year. it's not as easy to build up quickty as it used to be. >> nila, your advice is found. in all of my years as a financial journalist you're te telling people that will be safer and they're protecting themselves. but what you're advising people is more likely to cause the economy to turn down because we're not promoting the behavior that got people into trouble. this is a fine line here.
>> it is, if you have a good down payment and good credit score that's when you can get those rock bottom rates. if you don't have a big down payment. if your credit score is a little tampered with, if it's not preteen you're not going to see that rock bottom rate and you may not be able to qualify for a mortgage at all. >> it will be interesting to see how this all plays out. what is your best guess. i know i asked you, and i if and i were in the market this would be a good place to go. do you sigh them going lower? >> thing is possible. i think the consensus is despite this great down turn in the market today and the past week we expect rates to rise in time of the fed easing quantitative easing. >> nila richardson. chief economist at redfin. when consumers feel the ground swelling underneath them they'll feel nauseous and afraid, anything but confident.
what happens when you stop spending? "real money" returns in just two minutes. primetime news. >> welcome to al jazeera america. >> stories that impact the world, affect the nation and touch your life. >> i'm back. i'm not going anywhere this time. >> only on al jazeera america. >> hundreds of days in detention. >> al jazeera rejects all the charges and demands immediate release. >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime.
cotton candy. but in a market with these wild swings that we're seeing now could see the opposite. consumers are afraid to spend money. the problem when you stop spending businesses stop making money. when that happens, bad outcomes follow including job losses. goldman sanctiogoldman sachs former goldma goldman sachs director may ow naomi prince and david, if you were looking at this from the outside we were creating a quarter million jobs a month. this is fantastic. what is wrong? >> the jobs are low-quality jobs. the full wage growth it's not following through so there is a disconnect there. maybe it's just a lot more part-time jobs are being created than full time jobs but that's a big part of what's going on.
that's a big part of the disconnect. >> this morning we started off with sales numbers that didn't look so good. they were down .3 of a percent. versu versus august. what is this telling you? >> i think we're still dealing with some issues where the first quarter is weak. the second quarter, pent up demand. that flowed through. the consumers tend to buy back to school. august, there was no reason to get people into the stores. people weren't buying. people are not confident. they're nervous and i got to tell you with this ebola outbreak going on and even other viruses all these things going on out there. the negativity from the election going on, i think it will get worse than it gets better. i'm worried about it. >> naomi you said something very interesting. you said basically the market is
reflecting what the rest of the real economy participatements have known for a while when it comes to the economy. i don't know if you're overstating it to make the case because one can look at things in this economy that are really good but in fact, there is something going on with the consumer and key can't figure out what it is. >> i agree with you. there is certainly fear. there is certainly a lack of confidence. what the markets have been showing over the last two weeks is a catch up. what the consumers know, consumers are people who have to pay bills. they're people who need jobs. they are people who know that the companies they work for will be there and they can survive and pay their bills. if they can't do that they're not about to buy extra things. that's one of the things that is happening. the fact that the market has been deteriorating so quickly and the volatility has increased but all the policies that have bouyed the market from zero interest rates to corporate buy
backs have basically created this artificial market, which has not reflected the aggregate economy that most people live in. >> the reality, naomi, is for the 14% to 15% of people who don't own stocks they no longer see market performance as a reflection of the economy. the last year or so, david, when we've seen the s&p 500 up 30% since the beginning of 2013, there are a lot of people who--they're not feeling a relationship to that. >> no, they're not. they just--it's interesting i think what happened the fed put all this money into the economy, and it was all put in banks and it was not spread out. there are 3 trillion-dollar in reserves sitting in banks that the fed put into the economy. it has not done anything. it's time to step back and say what is what is next? what can we do to fix this
economy because the fed policy is not working. >> naomi, we have two what nexts here. we have what's next for our viewers, and i have no idea what will happen tomorrow or the next day. this is volatility and we have to get used to that. the investors want to know what is next, and then how do we fix this? we've thrown everything we got to goosing this economy, and when you got done its ungoosed again. >> that's the artificialness in the market, it's been in corporations to use cheap money to buy their own stock and not to investment in the growth of their product, the growth of their jobs and wages. from an investing standpoint you're looking at a market that is losing, has lost the team that was artificial to begin with. not only is there 3 trillion-dollar sitting in reserves, all told the fed has
$4.5 trillion worth of bonds on their books. the ecb in europe, another factor in a global mental healthdown and lack of confidence has almost 3 trillion-dollar worth on their books. there is a lot in this economy that has not and will not trickle down. what is the next policy standpoint? to realize that's not going to happen, and to start take some of this money off of being used for creation of more debt, and use it for purposes of creating jobs, of growing the economy, of actually helping individuals restructure their own debt the same way that banks were allowed to restructure their debt years ago, and from which they've managed to see their stock prices rise, and the individual has not managed to see their personal financial circumstances rise. >> david, i don't know if you share naomi's politics, but if someone articulated what she just articulated i would vote for them. we're in the middle of a midterm election and we're not hearing
this, what to make the economy work. >> i won't get to policy because you probably know it better than i do, you but just the anger--taking a point of what she said, 90% of profits are paid out in form of dividend and buy back. you're seeing r & d budgets lower. part of it is that the companies are not incentivized to do that either. it's a never ending cycle, and everything looked better than it was because the character was going up, but the economy remains a challenge. david, good to see you as always. with janney montgomery. and naomi prince author of all the president's bankers. >> the latest ebola patient was on a flight, which is not helping. we'll look at how they're
>> in jacmel on haiti's southern coast surfers aren't an unusual sight these days, but just a few months ago, some of these boys couldn't even swim. they're all part of "surf haiti", an ambitious project aimed at bringing tourists and their money to the beaches. joan mamique who runs the camp says surfing here is about more than just catching waves. samson jules, who was one of the first boys to learn to surf here, tells us the project has the potential to change the lives of his entire community. the passion from these young haitians is unmistakable and it's the chance to be part of the lives of people like samson that organizers hope will draw surfers to these waves and ultimately help tourism grow. >> i would love for there to be a haitian representation in the international surfing circuit... professional. i would, really, really - 'cause
then once they announce "yeah, this kid is from haiti" and he's out there ripping it, then all of a sudden people go "haiti... surfing" and a whole industry kind of pays attention. >> "surf haiti" remains for now a small project with few customers. with waves like this, it's hoped that will soon change. >> news of a second healthcare worker in texas has tested positive for ebola causes fear that american hospitals are not equipped to handle this. jack chow said these new cases expose huge deficiencies in our national protocols when treating
ebola. chow has suggested an emergency core to fight ebola. he's cuply a currently at carnegie-mellon university. this american was involved in the treatment of that ebola patient who died, and then left on a plane and came back. i'm not a healthcare experts but there are things that would seem obvious to have a better handle on, and people are losing faith. this market down turn was in part because of a growing ebola scare. >> the second case races red flags about the effectiveness of these protect calls. they'll have to do investigation and interview of these brave nurses and ferret out if there are commonties in their actions
and movements and whether they were infected through separate independent actions. the fact that cdc is calling for people who are self monitoring to stay in town and to inform cdc when they traveled, appare apparently something did not go right in that regard. we'll have to see how were these travel lines communicated if they were communicated, and ho how--what was the state of mind of this kid chen they received this guidance. >> when i hear protocol, i assume its more than let people know what they're posed t supposed to do. we've cut funding to cdc, some of these things have to be voluntary and self monitoring, you're doing a regime that would be a lot more stringent and a lot more global. >> number one, protocols are
snapshots of adjustments at the time they were form. they may not capture all of the variety of american healthcare systems. furthermore circumstances change. the guidelines written just a few years ago may become obsolete because of how people travel and go about their business what i'm calling for is a coalition of countries who can go in and create treatment. in the united states the cdc is creating an ebola s.w.a.t. team to deploy to cases as they occur. >> what is the answer--a number of nurses have come out and said they're not well trained. they don't know all this stuff. the problems that we're hearing, are these all fixable? can we get nurses and healthcare
workers the training that they need? >> there is an action that nearly every hospital and clinic can take in short order, and with fairly little cost. that is to conduct ebola exercises and drills and send mystery patients into ers to gauge reaction of doctors and nurses. you want to ferret out gaps now and fix them. and hospitals are starting those drills. >> one of the things that we kept hearing about is that this is going to spread more in liberia than in nigeria where they had ebola protocols in place and they understood it. we thought the difference was the devil and technology of communication. here in america we've got all that. is there any good reason for there to be more ebola contractions in america? >> well, our health--america is
the world's healthcare superpower. we have the deepest level of technology, ironically we also have great deficiencies in coverage of low income people not accessing health insurance. so there is vulnerability in the american system when travelers enter the country asymptomcally and become ill. and if ebola were to strike a low income neighborhood where access to healthcare is not efficient. we have to in the long term address these major inefficiencies. >> we don't want to doubt our authorities or question the good will of these healthcare workers and the senator center center for disease control, but there are people out there wondering is what i'm hearing true? are we safe?
martin joins us on the phone from los angeles. hugo, i just had david on the show saying that he was backing up the truck and buying transport stocks because the airlines, the big airlines, delta, american, united, their stocks are down 20% since the middle of september largely because of cancellations or planned travel that is not happening because people are getting fearful. >> and you can also investment in bleach. i'm told that's going to be on a run. yes, the airlines stocks did take a big tumble earlier today. they're still down, but not as much. nats are saying with the thanksgiving travel coming up people might be fearful of flying. we spoke with unions who
represent pilots. they're worried as well. they're asking for the airlines to step up and make sure that they're protected. if they're worried, you got to expect that the passengers are worried. >> they generally think that the public overreacts to most of these things. we saw strikes by cleaning crews in cleveland, and you know, this is--if we're not sure that the county and the cdc and the hospitals and healthcare system is handling this properly, would it make sense for airlines to jointly create protocols that would assure flyers, staff. >> yes, i've been expecting that for days. that they would come forward and say, look, we're going to step up our game and even detail what they're doing. i'm surprised it has not been done, and it's something that the airlines have been saying we do a thorough cleaning overnight when the plane is put out of service for the night, but i'm
sure it would assure the public if they came out with new detail and talked about extra procedures that they're doing. >> how far do you see this going, hugo? clearly the consolations we have seen could be the froth on the top, people who didn't need to go. but in the end most of the traveling is done by business travelers. is there anything that will go in favor of conference calls, delays, will this get worse before it gets better? >> only if we have more incidents. i spoke with travelt travelocity, and they said they've seen no signs of mass cancellations. maybe one or two here and there, but as a big wave they have not seen that coming. and they all say if we have more incidents like this, you could probably expect that. so with this latest case with the frontier airline flight, i'm not sure if that's enough to tip
the scales or if will take a few more incidents. >> when there are big weather problems is anybody in the industry putting those policies into effect? >> they're not. i've seen on change.org there was a petition being circulated to ask airlines to waive the change fee so people can get out of their flights. >> there have been politicians calling for ca cancellations from west africa. except there are no flights from west africa. >> there are no direct flights to the countries hardest hit. but most of the travel that comes to the u.s. from those countries goes through europe or goes through brussels, paris, places like that. >> and nigeria, senegal, you can get to other places more directly, but is there a sense
that--is there another player in this? because clearly the stopping of this virus does depend on people's mobility. is there some sense there is an international movement to stop this at points of entry around the world? >> right now the cdc is saying that all the procedures that are in place are pretty much the best that we can do, and i don't see a wide call for anybody else to step in. the "world health organization" has put out what their recommendations are. the cdc has set out standards--guidelines for how much airplanes need to be cleaned. but so far nothing really, and then there's been except for like you said the call to close off basically the routes from
these african countries. i haven't heard of anything else. >> i don't see that working. hugo, good to talk to us. hugo martin travel reporter from the l.a. times. you can't talk about fear and threats without talking about the middle east. how much longer will the latest fight last? i'll pose that question to the iraqi war veteran who lily wrote the book on modern warfare. this edition of "real money" in just two minutes.
>> the campaign against aisles in the border town kobane is intensifying. they have launched 18 attract overnight near the contested syrian city. central command said that bombers and fighter jets destroyed multiple isil fighting positions and hit 16 buildings occupied by the militants. meanwhile, in iraq isil fighters are on the march towards baghdad and reportedly are on the verge of taking over a strategic town 25 miles west of the capitol. we have exclusive video that shows the military tactics of aisles. >> thiaisles--isil. >> this is a previously film site of an isil attack.
iraqi army sent in helicopters that dropped bombs on the group. isil fight back using anti-aircraft guns. isil fighters are confident. [ gunfire ] they chant god is great, and isil remains. isil expands. the unofficial slogan of the group. but as the iraqi army push closer they change tactics from offensive to defensive. using captured iraqi army humvees as cover they storm the groups. they are in effect using u.s.-made weaponry and armor against iraqi forces. isil is well equipped and uses tactics that will be familiar to armies the world over including making full use of the terrain. as it gets darker iraqi army seems to have beaten back the group and retreats to positions and villages that it now controls.
this typical of isil. take control of the town orvilleage or retreat to save havens. surrender is not an option. what this footage shows us is that aisles fighters are focused and determined. in this case the iraqi army were not able to push them back. that has not been the case of anbar province where the group has taken mortar tore. the coalition airstrikes don't seem to be making a dent in the group's ambition leading many here to wonder whether an international ground assault is needed but the stated of the u.s. is that no boots on the ground will be here to fight isil. al jazeera, baghdad. >> now u.s. snarl command announced that inherent resolve is the designated name against isles in iraq and syria, but retired not only lacks resolve. you wrote a column in political
magazine entitled america needs more strategy against isil. in his new book knife fights, a memory euro of modern war in theory and practice. now the head master of school, lieutenant john nagle, you were with us on the show about month ago, we asked you how long they will be in iraq an you said you'll be long gone before it's over. >> the president has expressed good, strong goals that are correct. unfortunately, he has not provided the resources necessary to accomplish that. so the iraqi army really needs american advisers, special
forces, a-teams embedded inside its battalions, brigades to provide intelligence and really put a steel backbone behind those iraqi units to help them overwhelm the isil opposition. without those american advisers, without more american boots on the grouped, not fighting but helping the iraqis fight we're not going to accomplish the president's objective. >> are we talking about big numbers between the numbers that we've got on the ground now versus what you're talking about. you're talking about special forces in with every iraqi battalion? >> correct. we have a little more than a thousand troops on the ground. they're mostly in head quarter roles. they're far back from the front line fighting we just heard. in order to succeed we'll need to increase them about a factor of 10, 10,000, 15,000 advisers to put a dozen inside every iraqi battalion and brigade.
they'll have to get their noses in the fighting. that means that some will likely get hurt, hopefully no one would be captured. the time is urgent. isil is very close to be did not capture baghdad international airport, least render it unusable by u.s. and international forces. that would an di seaster. >> you were involve in the training of people who trained the troops. with worked with general john allen, president obama's special envoy with respect to isil. they just released a statement where general allen has said that they've reached an agreement to have turkey involved in the training of coalition fighters to be the ground troops to take on isil. what does that mean? >> that means that turkey is going to provide more hyped the line trainers. my sense is, my guess is that
will largely be the free syrian army forces that will work on the other side of the fight inside syria. we're talking about multiple months if not years before those forces are going to be effective. we simply don't have the time to wait that long. >> your book, i know you've been working on it for a long time. it's your culmination of your experience in the military, and your sense of history. you're very well trained on this, but it comes out at a very important time. "knife fights" is reverent to the reality on the ground in iraq right now. tell me why when people read this they'll understand a little bit more about what actually has to be done? >> so the book starts in operation desert storm, my first war in iraq. it notes after the withdrawal of american ground troops from iraq we continued an air operation southern watch over iraq for the next ten years. and then invaded iraq in marc
march 2003 unnecessarily, and badly. we mishandled the occupation of iraq, and frankly seized defeat from the jaws of victory by pulling all american advisers out at the end of 2011 rather than keeping an advisory presence behind. that decision, along with the decision not to arm moderate syrian rebels in the summer of 2012 has gotten us into the mess we're in today. it's hard to under how we got to this position and what we need to do to get out of this position with the baghdad international airport under threat if you don't understand the history. >> i think the history will be crucial. it's called "knife fights" by lt. col. john nagl. thank you, sir. take a breath. what a wild ride it was. the drop came and went in a
swing in the dow in just two hours. the stakes seem higher. for a moment with the dow posting at single biggest drop in three years, an uncertainty reminiscent of the recent financial crisis started to creep in. the potential suspects for today's drop, you can retight them with me. a slowing. >> it's a frustration you feel when you look at your savings and you asked justifybly why am i not getting ahead? i understand the insting to panic, but for now stay calm. when opportunities present themselves you'll find out about them as quickly as i do. there is no point in saying that there isn't a storm coming. what happens tomorrow, i don't know. but i'll be here every night making sense of it all. that's our show for today. i'm ali velshi. thank you for joining us.
plan. [music] >> president obama tries to reassure the nation that ebola is undercontrol. >> these protocols work . >> but some aren't convinced. >> we need to consider our health. >> nurses in dallas said they didn't get the right training. and now a second nurse comes down with ebola. the cdc says it was ready. >> we're stopping it in its tracks in this country. >> but are u.s. hospitals really prepared? the ebola crisis, our